Chapter 2 Qualification & Credentialing Entities

Question 1

In 1908, this realtor association was formed

Answer 1

National Association of Realtors

Question 2

What year was a code of ethics created by the National Association of realtors to counteract the profession’s negative public perception?

Answer 2

1913

Question 3

When was a uniform set of standards formed for appraisal practice?

Answer 3

1980’s

Question 4

The savings and loan crisis occurred when?

Answer 4

1986

Question 5

USPAP was created when

Answer 5

april 1987

Question 6

Also in 1987, eight U.S.-based appraisal organizations formed

Answer 6

The Appraisal Foundation

Question 7

On January 30, 1989, the Uniform Standards of Professional Appraisal Practice was formally adopted by the

Answer 7

ASB

Question 8

In 1989, The Savings and Loan (S&L) Crisis resulted in the passage of the

Answer 8

Federal Financial Institutions Reform Recovery and Enforcement Act (FIRREA)

Question 9

Among the requirements for this act was a mandate that each state set up a program for licensure and/or certification of real property appraisers, and a requirement that appraisals for loans made by federally-regulated financial institutions must be completed by licensed or certified appraisers.

Answer 9

FIRREA

Question 10

The Appraisal Foundation was also referenced in the law as a recognized source for both appraisal

Answer 10

Standards and qualifications

Question 11

This board exercises all power and functions of The Appraisal Foundation, except for the authority delegated to the Appraisal Standards Board (ASB) and the Appraiser Qualifications Board (AQB).

Answer 11

BOT Board of Trustees

Question 12

This board serves as the executive board for the Foundation, and is responsible for funding the other boards, as well as appointing their members.

Answer 12

BOT Board of Trustees

Question 13

This board exercises all authority over the subject, style, content, and substance of the Uniform Standards of Professional Appraisal Practice. It performs all functions of the Foundation with respect to establishing, improving, and promulgating USPAP.

Answer 13

ASB Appraisal Standards Board

Question 14

This board establishes minimum qualifications for licensure, certification, and recertification of appraisers.

Answer 14

AQB Appraisal Qualifications Board

Question 15

The board has no enforcement authority in any jurisdiction. But this committee, which is part of the federal government, serves as the mechanism by which the requirements of the AQB become enforceable.

Answer 15

AQB

ASC

Question 16

Which board within The Appraisal Foundation is responsible for establishing requirements for appraiser licensure and certification?
Board of Trustees (BOT)
Appraisal Standards Board (ASB)
Appraiser Qualifications Board (AQB)
Board of Governors of the Federal Reserve System (FRB)

Answer 16

Appraiser Qualifications Board (AQB)

Question 17

Which was NOT a direct result of the passage of FIRREA?
USPAP was upgraded from a voluntary to a mandatory standard
The Appraisal Foundation was established
Each state was required to set up an appraiser licensing/certification program
The financial institution regulatory structure was changed

Answer 17

The Appraisal Foundation was established

Question 18

The Appraisal Foundation issues Valuation Advisories on recognized appraisal methods and techniques. For appraisers, compliance with these Valuation Advisories is:
Voluntary
Required by state appraisal regulatory agencies
Forbidden
Mandated by federal law

Answer 18

Voluntary

Question 19

Which statement BEST describes The Appraisal Foundation?
It is made up of eight U.S.-based organizations and one from Canada.
It is a federal government agency.
It is a non-profit organization established for educational and scientific purposes.
It is the organization responsible for enforcing the requirements of USPAP.

Answer 19

It is a non-profit organization established for educational and scientific purposes.

Question 20

Title XI of FIRREA also created the

Answer 20

ASC

Question 21

The ASC is

Answer 21

a federal government entity within the Federal Financial Institutions Examination Council (FFIEC).

Question 22

The makeup of the ASC was subsequently changed as a result of the

Answer 22

Dodd-Frank Act of 2010.

Question 23

Currently, the ASC is composed of members appointed by the

Answer 23

four federal financial institution regulatory agencies (FDIC, FRB, OCC and NCUA), plus the Bureau of Consumer Financial Protection (CFPB), the Federal Housing Finance Agency (FHFA), and the U.S. Department of Housing and Urban Development (HUD).

Question 24

Within the appraisal regulatory arena, the ASC has several significant responsibilities, including, but not limited to:

Answer 24

Monitoring each state’s appraiser licensing and certification agency to ensure compliance with the requirements of FIRREA
Monitoring the requirements established by the federal financial institution regulatory agencies
Monitoring and reviewing the practices, procedures, and activities of The Appraisal Foundation
Maintaining a national registry of state certified and licensed appraisers

Question 25

The ASC is funded entirely by

Answer 25

registry fees paid by each licensed or certified appraiser. Currently, the registry fee is $40 per appraiser, per year.

Question 26

How many state appraisal regulatory agencies are there?

Answer 26

55

Question 27

State regulatory agencies establish both

Answer 27

standards of practice and the criteria for appraiser licensure, certification, and recertification within their state.

Question 28

State appraisal regulatory agencies are charged with the responsibility of

Answer 28

reviewing applications for licensure, certification, and recertification, in order to determine whether an applicant has met the qualifications. The agency is responsible for issuing credentials to individuals who have met the established requirements.

Question 29

“a paid occupation, especially one that involves prolonged training and a formal qualification.”

Answer 29

profession

Question 30

These from a state licensing or certification agency are issued in accordance with the power provided to the state agency by Title XI of FIRREA.

Answer 30

Credentials

Question 31

These are awarded by a professional appraisal organization signify that the individual has met the organization’s requirements for designation, which may include education, experience, and/or an examination.

Answer 31

Designations